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tv   Markets Now  FOX Business  December 14, 2012 11:00am-1:00pm EST

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let's and it now. dagen and connell, i think it is yours. connell: thank you, stuart. dagen: welcome. i am dagen mcdowell. connell: good morning. i am connell mcshane. monica crowley is here to say the republicans need to play hardball. scott says all the posturing may be creating some investment opportunities. both of them will explain. dagen: the deadline to do something about iran is right here. it will dominate headlines in the new year. connell: walmart wants the twinkies off to its cell. the retailer is making a play for the assets.
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dagen: the wonderful -- you have no idea where i am going. i can get myself into trouble. connell: yes you can. dagen: stocks now and every 15 minutes. nicole: the markets are pretty much spot. let's start off with apple. the $700 stock back in the middle of september. one product after each other the price target is now $700 from 780. not too optimistic on the iphone5. it is down 3.5% right there.
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the vix, the fear index, is to the upside. the dow is higher while the s&p and nasdaq are pulling back. back to you guys. see you later. connell: thank you. after the big meeting they had last night, the speaker of the house, john boehner, is heading home for the weekend and ohio. dagen: rich edson is following the action. rich: there are cell phone communication and airports in his area of ohio. he can come back if he needs to do so. even after last night's 50 minute meeting with president obama at the white house, there still is no significant movement towards a deal on the fiscal cliff. they have a frank and open conversation last night and the
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lines of communication remain open. the major difference here between both sides is you have democrats wanting an immediate tax rate increase on families earning more than $250,000 a year, more revenue and more specific increases and for republicans, they are looking for more in spending cuts, more entitlement changes, more commitments of that nature from democrats and they are not getting that. you also have republicans discussing what amounts to a backup plan if the impasse continues and we do head towards the fiscal cliff and nearly every federal tax rate is said to increase. if that happens, what will the house of representatives due to lack
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if you do not have a deal by monday, you start, at least, procedurally, for getting this thing entirely. conversations continue, but, still, no real progress. dagen: thank you, rich. scott miner says it is greatly over stated. how is it overstated? >> well, i think, at this stage of the game, the market already assumes it is not likely we are going to get a deal. because they assume we are not going to get a deal, we are pricing for one of the worst case scenarios. if we just went off the cliff, at this stage of the game, removing that uncertainty from the market would result in a rally from the equities. i think it is a good entry point in the next few weeks.
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dagen: we were looking at the ten year treasury and the yields have gone back up. i have heard people say the yield should be at 1.2% if we end up going over that live. you do not buy that, you do not think there will be a rally and money coming out of the stock market, in addition to what we have rdc and? >> i think it is likely that we would get some sort of rally in treasuries. we will have some noise in here. you know me, i look at things over a two-five year horizon. you are being rewarded to take the risk right now. equities are not where they should be. take a stock like conoco phillips, it yield 4.9% on a dividend basis.
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johnson and johnson, which yields 3.5% on a dividend yield, but it's dead yield is 1.5. these comparisons are just too compelling for so many income oriented investors. i think they will put money there. dagen: how it now use inflation, do you think we are maybe even closer to a serious, serious pop up and long-term interest rates? >> i think the fed, by virtue of doing what it did, has a lot more ambiguity in the policy it when they will exit. for instance, the forward looking expectation on inflation on 2.5%, as being a policy guide, if it gets to 4%, the fed
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does not do anything, the expectation is it will come back down to 2.5. all of these questions are completely out there to be answered as the events occur. at the same time, they took the certainty of short-term rates staying at these low levels until 2015 off the table. the market -- dagen: what if on a planet 6.5% in the next year? >> i did not like what the fed did in a statement. it raises a lot more uncertainty. dagen: the fixed income guy who likes stocks. good to see you, stop. be well. connell: the gop needs to play
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hardball. >> every indication is that speaker dinner and the republicans need to go down the road of higher tax hikes. you do not go she and public. you do not play your hand in public. connell: let me ask you what the other options are. i will not give in on these higher tax rates no matter what. the president says i won the election, we need them. >> i thinkkthe president wants to go over the cliff. the assumption that neither side wants to go over the cliff is wrong. the republicans certainly do not want to. the president, remember, he is an ideologue.
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republicans will get blamed for that matter what happens. no matter what happens in this negotiation, they will get blamed for it. instead of equating taxes with spending cuts which has been in the back and forth so far. they have to pay the higher taxes. in exchange for what? usually the deal is some promise of spending cuts down the road. future congresses are not really found to uphold. what they really should be saying, okay, you want to talk about higher taxes, we will put
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more revenue on the table in exchange for either real cuts or changes in the benefit formulas and eligibility for entitlement programs or termination of and power federal spending programs. not just slowing the rate of spending. connell: are you one of those people that thinks boehner is on his way out? do you think he will hang on? >> i think if he gives in, he has a very serious problem in terms of holding onto his leadership. nobody wants democrat party and democrat party like. they want them to stand up, fight back. dagen: but you have a full report -- [talking over each other] dagen: we lost the election. we did not win.
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he is in a tough position. he is getting and from all sides. connell: they want to give them. they are thinking about the next election. they want to get this out of the way. >> start standing for something now. the reason why republicans keep losing these national elections is because they are not willing to stand up. by the way, the republicans also retained control of the house. they did win that part of the election. american people want the republicans there. dagen: everybody will be bad when they say -- everybody will be bad when they see the payroll taxes. connell: thank you, monica.
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dagen: the biggest story in 2013 will be iran. connell: the tech pioneers, john mcafee, he has been in the news for all the wrong reasons lately. he is back in the united states. plenty of mystery. dagen: where you may find your next twinkie. walmart may be the only place you may be able to find them. take a look at the oil market. completely unrelated to twinkies. i guess they are not made of crude oil. [ laughter ] ♪
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connell: market now. nicole petallides@a quarter past the hour. nicole: let's kick it off with best buy. talking about the founder possibly moving forward with a buy offer. now the author has been pushing back. with that deadline pushed back,
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it means this deal is not happening imminently. the 16% gain that you saw yesterday, it was a raised by the almost 16% loss that we are seeing today. that rings me to general electric. raising dividends. the bad news for the shareholder is it will not be moved up to december like so many companies like caterpillar and mason. they are also authorizing another buyback. back to you. connell: it is time. let's bring in charles. let's talk about caterpillar. charles: i like caterpillar. this will be one of my 2013 and
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investments. i have always liked the company. it is extraordinarily well-run. 20% of the revenue comes from outside of this country. it always feels a little myopic that we are always talking europe and america. this company has exposure to the global economy. what triggered it today was this china pmi number. i know gordon chang has been on. dagen: yes. we were there. charles: a lot of people do not believe the china story. this number to me tells really nice with other things.
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dagen: most people already own it in their 401(k). charles: you are absolutely right. the stock is down pretty big from where it was. this last quarter was a disaster. north america construction was up. almost everything should go up next year. i love the risk reward on this. connell: this will be a huge story whether china is about two, you know, come back or collapse. charles: a minimum of 8.5% next year. we would take it in a heartbeat. dagen: deceleration is dangerous even if you are still going at 8%. connell: thank you, charles. appreciate it.
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dagen: we are. on saturday morning. connell: umbrella. no changes to the tax structure. dagen: more on the impact of the fiscal cliff. women are worried about it. there will not be spending that much on it on you. they will probably be spending it on themselves. a look at how the world currencies are very against the dollar today. ♪
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>> i have your fox news and eight at 23 minutes past the hour. a shooting at an elementary school in connecticut. the government is dead. there are reports of a second gunman. emergency crews are on scene pending to several injuries. state police are telling us they
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will hold a news conference at 1:30 p.m. eastern time. protecting the nation from a potential syrian missile attack. two batteries of patriot missiles and a force of 400 u.s. soldiers. leon panetta did not say how soon they will be deployed or how long they will stay in turkey. back to dagen and connell. connell: the state of oregon has gone to great lengths to please nike. the governor asking for authority to ensure that the corporate tax structure will not change for companies like nike nike threatening to move its headquarters out of state unless organ can guarantee it tax structure will not change.
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students are not the only ones with college debt. in effort to appeal, they end up footing the bill for all of this. according to moody's, debt among colleges was $205 billion outstanding. also reporting harvard has the most debt of any private school in the nation. you may be disappointed, guys, by the gift your significant other fires you for christmas. dirty 1% of women planning to spend less this year than last. only 19% of men pulled will spend less. it finds the looming fiscal cliff deal weighing on shoppers
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minds. here is our conversation, part of which i posted on twitter. men have to spend more money on women to shut them up. connell: there is not enough money in the world. [ laughter ] dagen: to not laugh at him. do not encourage him. connell: let's keep going. dagen: really? we have to move on. oh, lord, have mercy on my soul. the world will have no choice, but to deal with this looming nuclear threat in 2013. connell: the story of the year. surrounded by rumors, murder and drugs. the computer wizard, john mcafee, he avoids deportation from one of mullah by popping up in miami. it is just beyond.
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but first, all market now, some winners today on the s&p 500. ♪
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connell: we are back on market now. let's bring nicole petallides back. nicole: we will bring you right over to the post. it is down about 12%. the fourth-quarter profit 86%. not good news.
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a downbeat first quarter. missed revenue guidance in the latest quarter. when you think of verifone, one of their main objectives that they make credit card readers. these are some of the jobs that are under their umbrella. not a good quarter, not a good outlook. the nasdaq composite down about .5%. the dow also to the downside. back to you. dagen: he must be making his daddy proud. not only getting the countries first long-range rocket up in the air, without disaster, he has now 1% of the year, the online poll. he the out jon stuart, gabby douglas and even, chris
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christie. just another award for the leader. connell: this is real, right, the story that we just said? the onion had a fake story. from that -- [talking over each other] connell: this could be the last day. [ laughter ] dagen: i am kidding. connell: no you are not. [ laughter ] connell: kim jong un, the sexiest man alive and next year is the year of iran.
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dagen: joining us now is senior geopolitical strategist at barclays. >> the problem is if we do not get a deal, june or july, iran may reach breakout territory. this is coming to a head quite quickly. connell: let's talk about what we do in the united states about that. how these geopolitical events and drugs affect that. >> i think we look at what we saw over the summer.
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the market says we see an off ramp. if it does not materialize, we are in for a nasty shock. he will be reelected. the question is if he gets a huge majority -- he is protecting israel from the threat. he put himself in a bit of a corner. connell: do we have options, the united states? >> this that made things tough for the irony in.
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the sanctions are actually starting to leak a little bit. is it difficult enough to force them to abandon their nuclear ambitions? probably not. dagen: acknowledgment of the rebel group in syria, do we go further than just that given what we know or do not know about those rubbles? >> is it too late to change the outcome? we are picking the rebel side which we think represents our interest. will they be the ones in power? you look at the recent military gains, the group that has been the most successful is kind of the extremist group. that is a real problem. connell: it is always great to have you on.
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>> thank you so much. dagen: we love having you on. we always learn so much. happy holidays. >> thank you. thank you so much. dagen: mcafee back in the united states after a month long run from belize police. he is currently soaking up the sun in miami. >> we just spoke with john mcafee. he went back into the hotel. prior to his arrival here, this building was featured in the movie "scarface." mcafee's status is a free man here in south beach. down in believe, his legal status could get a little more complicated.
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a man was killed in early november not too far from the mcafee apartment or house where he had been living since 2008. however, at this point, the fbi is not involved. as far as mcafee is concerned, he does not anticipate it ever to happen. however, he is now waiting for his two girlfriends. two women that were down in one of mullah city. they are waiting for entrance papers from the state department. >> they are now both legally in
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guatemala. i just do not know right now. >> yesterday, this 67-year-old billionaire, software, formerly retired software tycoon, revealed he has some ink on his back. an extensive tattoo. the people that are spotting him, having recognized him for being on the news for the past several weeks, they are all posing for photos with him because he has become the latest reality celebrity. dagen: that is a trip to crazy town right there. thank you so much. i love how you worked in a "scarface" reference. thank you very much. connell: people losing holiday cheer when you start speaking to them about the economy.
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confidence is down heading into the new year. dagen: walmart is ready to roll out some cash for what is left of hostess. twinkies, snowballs, you name it, we will tell you. 1.7 on the ten year. a little higher than it has been. ♪
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>> im adam shapiro with your fox business brief. consumer prices fell last month for the first time since may. even with november's the client, this placement at the consumer level is still up. nearly 2% from the same time last year. posting the sharpest increase in two years. according to the federal reserve, output rose 1.1%.
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two companies are trading higher today thanks to goldman sachs. tivo stock is jumping after being initiated with a fire rating. a price target of $15 a share. marathon oil also getting a boost. thirty-nine dollars price target. that is the latest from the fox business network. giving you the power to prosper. ♪ [ male announcer ] where do you turn for legal matters? maybe you want to incorporate a business. orrotect your family with a will or living trust. and you'd like the help of an attorney. at legalzoom a legal attorney is available in most states with every personalized document to answer questions. get started at legalzoom.com today. and now you're protected.
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connell: look at these numbers. a lot of pessimism coming out on the economy. 49% of people think the united states economy will be better a year from now. it is down from 53% in 2011. senior economist from wells
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fargo is here with us right now. how much does this matter? >> well, it matters when we see big changes. it signaled that there is a pullback in attitudes. if folks are more worried about the economy, they are less likely to commit to major purchases. right now, i think, it is really a situation where we will get past christmas and that is when i think folks will really focus on the fiscal cliff. if we do not get a resolution, i think it could really cut into spending in the early part of next year. connell: this fiscal cliff talk and countdown is so painful. it came up yesterday, they do this every time in washington. it gets to people after a while. regular people who just hear about it. even if it does not affect them that much. they just start to think, the government cannot do anything
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right. say they do. say they cut a deal. they come up with some sort of fiscal cliff solution, if you can call it that. what does the economy look like dead? >> i think that regardless of a solution, i think the economy will pick up. it is like a speed trap. you will slow down to some ridiculous slow speed when you go through that town. once you know what the rules of the roads are, you will come back through a little bit faster. connell: what are the things that we are doing right? >> well, the one area that is really picking up is homebuilding. homebuilding will do better.
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it will do better next year in a matter what happens in the economy. the inventory of new homes is that in inventory low. even if sales pulled even, construction will pick up. i am trying to balance that optimism with the reality when you look at past recessions, recessions are typically caused by policy mistakes. the potential for real harm is there. i do not think many people realize that taxes are going up for everybody on january 1. they will hit at the lower end of the social security payroll tax. that 2% temporary reduction is not going to be extended. absolutely not. everyone's payroll deductions will go up. probably, also, the expiration of the bush tax cuts. connell: less money in your pocket, no matter what.
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mark, wells fargo, as always, thank you so much. dagen: every 15 minutes, stocks now. nicole: that is right. we are taking a look at stocks. how about we look at adobe systems. it came out with quarterly numbers after the bell yesterday. take a look at the stock today. hitting a new 52 week high. earnings rose 28%. they talk about creative services growing ahead of expectations. you put it all together and it is a winning day for adobe. it is a number one performer on the s&p 500. as i noted, a 52 week high. the nasdaq composite and the dow, also, lower. challenging levels to see if they can pull out a winning week or not.
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three weeks in a row of gains for the dow and right here, these are the key levels. we will see whether we get a winning week or not. dagen: thank you. connell: to stay with technology and talk about an alleged flaw in microsoft's internet explore. it could be hackers following every room of your files. dagen: shibani joshi has this story. shibani: pretty scary news that i am pretty sure affects all of our viewers. internet explorer is currently in use in the majority of the world. it makes it a perfect target for hackers. spider .i owe saying that it has found a serious hole in the ie security that allows them outsider, attacker, to track what you are doing using your
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mouse. you do not even have to have microsoft windows open. even if it is closed, they can track it. a lot of online banking companies out there use ritual keyboards which gets you into your account information. microsoft says there seems to be little risk to users at this time. we know they could be late at responding to things. be cautious about this. there are other options out there. safari, chrome and other options. connell: shibani tama thank you. dagen: walmart looking to get the irresistible twinkies. dennis will join us with the
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latest. connell: some of the winners we are seeing on individual stocks. adobe was one of them. here are some of the others on the nasdaq. ♪ and wcan save you 10% on ground shipping over the ups store. look this isn't my first christmas. these deals all seem great at the time... but later... [ shirt ] merry chrimas, everybody! not so much. ho ho ho! this isn't that kind of deal. [ male announcer ] break from the holiday stress. save on ground shipping at fedex office.
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dagen: last chance for states to act on a key provision on obamacare. today is the deadline whether states will decide to run their own ordo klein to lead the
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federal government to do so. connell: walmart looking to get hostess. walmart would be a bidder for the twinkie maker. dagen: our very own dennis kneale joins us with more. dennis: let's face it, it did help kill the twinkie. now they may be brought back to life by one of the most hated union foes of all. walmart. the largest retailer for 40% of hostess suite sales. this is how delicious this would be. hostess close its doors last month.
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even the teamsters had agreed to swallow. over half of it going to teamsters who had never worked that hostess at all. they wanted to cut union rules. now, bidders looking at buying up the pieces. without union plants and some 18,000 workers. now, comes walmart. protest on black friday. the unions don't represent walmart workers at all, but they would love to. now, if walmart ends up buying the twinkies brand, that had to drive the unions crazy. don't you just love it. i bet you do, they love it.
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[talking over each other] connell: cheryl casone and you will be on next hour. house flipping. it is back. it has been a sputtering box office. we could end up with a record thanks to "the hobbit." dagen: we love it. connell: we will be right back. markets now. ♪ tdd#: 1-800-345-2550 this morningng, i'm going to trade in hong kong.
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rickets. dennis: apple shares falling again, the most beloved tacked giant at all. cheryl: john boehner is leaving washington. john boehner may lose his house speakership overall. dennis: college for $199 a month. top of the hour. nicole petallides at the floor of the stock exchange. nicole: this is the early loser of the s&p 500. potentially taking the company private. and it may be back on the tabling yesterday we heard reports from the tribune that it
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was imminent. that deadline has been pushed back. and shareholders and investors were crazy yesterday. they're selling it off at 16% what is happening with best buy. it is down 18 points. the tech having nasdaq, apple under pressure down 1/2% and the s&p 500 down 1/4%. we closed at 13,165 soviet two points negative for the week. cheryl: thank you very much. with no fiscal cliff deal in sight john boehner says he is on his way home to ohio. dennis: rich edson joins us from the beltway. if the house speaker's headed home his work is done or the chances of an accord are over? rich: somewhere in the middle and we are getting to the point
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where you won't see anything by christmas at least unless the two sides don't reach a deal by some time this weekend but after that meeting at the white house president obama, john boehner, aides say the two sides are as far apart as they have been for the past couple of weeks. still at an impasse. the lines of communication remain open so the stalemate continues. they want greater concessions, from republicans and tax rates to increase starting early next year for families earning $250,000 a year. for republican they want more concessions on spending cuts from democrats and entitleeent reform on the table and more democrats coming out saying medicare eligibility is off of the table and security of of the table and these are the moving farther apart than they were at the beginning of this process,
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negotiations lines of communication, aides say remain open. what they do if the impasse continues? congressional aides say that allow tax rates on january 1st. and put themselves on the record as passing something that would lower tax rates, tax rates automatically increase at the beginning of the year. and if this impasse continues in the next couple weeks, back to you. cheryl: a fairly empty day, and thank you very much. the fiscal cliff could cost john boehner his house speaker's job. john is with me, you think this is going to give him the boot. >> the most dual years, the last
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two years, a complete impasse. both are ruled by their extreme basis. they have 100% of anything they do in the negotiation process, you got to look at them and say somebody has to go, they both need to go. cheryl: we need to get to the end of the year, no deal with the deal and these sides can cut a deal, republicans, greater the tax hike, and they agreed to real spending cuts. they don't want to touch entitlements. >> you got to give something. they bring in $40 billion a year, deficit is
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number$.3 trillion. we have $2.2 trillion exactly in mandatory spending, in medicaid and social security and interest rate on the debt. we race to pentagon, and they're running a deficit we deal with entitlements. cheryl: it looks at this point the president said this over and over, he will not accept taxes, you got to tax the wealthy with those that make $250,000. how strong is the president's voice in this? >> it is huge, he ran four years on talking--taxing the rich and paying their fair share but the president feels like he cannot give on this. no tax increases, they have got to give something. if you give the tax on the rich
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and save $1 billion or more that will not affect that many people. most of these guys know how to get out of this. these are semantics as they have to give something. he painted himself into the corner, he will not accept the deal without this. cheryl: thank you for the commentary. dennis: stock alerts, apple shares down 4% after another float down. and shibani joshi, the apple goes from here? shibani: will be a bumpy road the next several months. and what the last few weeks look like for apple shares down 17% but over the last few years they have done well, what we're seeing now, questions about whether people are falling out of love with apple products.
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today reports the i phone 5 not week. there was a report that said ipad mini that everybody wanted is starting to cannibalize the company and it fails. this is a story which was a story unlike any other. this was a darling of technology and wall street firms so long and all good things must come to an end. i am not here to save the end is here for apple but it is not going to be the same story it was a year ago much less five years ago. cheryl: one thing dennis has been talking about a lot is stockholders dumping out because the fiscal cliff issue -- >> maybe they will buy at a lower level and after the first of the year. that could be a piece of this. i absolutely agree. you feel lot of investors timing it to the end of the year. also what you are seeing if you look at year-to-date charge the stock was up at the beginning of the year ended down now at this point in the year. they don't want to take a risk
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at seeing their gains evaporate in. still a 30% return plus the dividend -- a pretty good return to shareholders. dennis: here's the big case for investors. if you have been apple and dying to get into you buying january? the big question is is this sell-off? apple is down and in a two year stock charge when the s&p 500 was up 18% apple was up 120%. at stock has gained more than any other stock. 2% of the s&p 500, it is 20% of the tech center so you celadon and it has huge gains a new pay lower than fifteenth in capital gains instead of over 4% and you can buy it back in january but if instead of being merely a tax maneuver, if we begin to feel that there are no longer invincible, no longer perfect and we have that love affair with them -- [talking over each other] shibani: let me show you the i phone 5. i upgraded to the iphone 5, i am mad. you know why? i feel cheated. i spent $500 to get a marginal
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upgrade from the iphone 4s. i don't have a panorama camera like samsung, i don't have to share information like the h t c phones. it is starting to sink into the consumer's mind of getting shortchanged. dennis: i don't think that causes stock to plunge the way -- [talking over each other] dennis: a much more subtle -- [talking over each other] shibani: that is what impact the offer. cheryl: dennis is talking about 5% and shareholders making their moves and the fact that we have tim cook now, the new ceo with questions about his leadership and the decisions he has made that maybe did not align with steve jobs's vision. shibani: not aligning with the. would is that guy who is voicing over the apple newsroom? wi-fi forgot the actor's name. they're taking the completely
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different turn actor steve jobs is no longer with the company. this is inevitable. i think it is inevitable that you are seeing this happen. it lost its luster and i am an apple die-hard for the last five years and i am sitting here saying every new gadget in my pocket and i'm thinking i will rethink whether or not i will get the apple tv when it comes out or the iphone 6. the fact that i am starting to see this is eventually going to see into the mainstream. cheryl: i don't want an tv. [talking over each other] dennis: still be hit this game in town. we will see. cheryl: thank you very much. it is back. house flipping. is a dirty word but we have a guest coming up his says despite the risk, he and his franchisees' them making big bucks from. dennis: it keeps getting stranger. john mcafee back in the u.s. admitted to faking a heart attack in guatemala and insisting he is innocent in the murder of a fellow american.
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you will hear from mcafee himself. cheryl: it does not get better than that. this is outrageous. you won't believe what had project lawmakers are trying to hide in legislation designed to help victims of superstorm sandy. dennis: you might really believe easily that story and as we do oil. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves...
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dennis: time to make money with charles payne. he is good at it. we're looking at a battered retailer, j.c. p. charles: i am calling a reality rally. the reality is ron johnson we all know came in. he was a rock star at avalanche he is going to turn this whole thing upside down and reinvent the department store. forget sales and promotions, that is not how you do it. he has never been in a j.cc penney and it is a lot harder than selling apple products. stock has had a huge roll up, it went and got hammered and has been coming back and the law firm there saying they got their act together, jpmorgan, they're bringing back this discount, they're bringing back promotions, they have a friend and family thing. this is what i like. i am a volume die. the volume has been phenomenal.
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i believe 95% of all news in the market somebody knew the day before it came out or the week before it came out despite the rules. something is going on. there's a 43% short position on the stock. if there is good news, there could be asia huge pop to the upside. unlike tim clark, ron johnson is considered a celebrity ceo and might get the benefit of the doubt. it is i ridge the idea but could be a huge short m bit. cheryl: his pain would be over. for j.c. penney shoulders -- shareholders. stocks every 15 minutes, team coverage. phil flynn in the trading pits of the cme. first to nicole petallides on the floor of the stock exchange watching general electric. nicole: good news and bad news in general electric, depending on how you view this. general electric's dow components raising its dividend, ultimately sounds good at first glance, raising the dividend by 12% quarterly payouts.
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starting in january versus december which is not good news, doesn't avoid the fiscal cliff and the likely higher taxes you will pay in the new year, the other thing we should note is if we release the dividend, different tax brackets. it is not a piece of good news. they authorize the company buyback of ten million shares. and raise additional casts -- cash. phil: just when you thought you could follow the car in the gas tank, futures are on fire today, a binnacle gallon. a lot of refinery issues, bp is one and another one in the midwest. both down, one is suing some contractors because of some
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faulty fireproofing equipment, bp refinery, because of that they have to ridge that out and start all over again. that news is -- we have seen cash prices in a chicago-area go up $0.08 overnight and we are seeing that in the gulf coast as well because a lot of gas in the gulf coast has to make its way to chicago to make up for that. cheryl: college for $199 a month. we have the university ceo who says there's no reason students have to go into debt to. dennis: walmart once the twinkie ultimate self. how big retailers make a play for the assets of bankrupt post this brands. cheryl: we're going to look at world currencies and how they're faring against the u.s. dollar. the u.s. dollar has had quite a weekend the euro having a better day. $1.31. we will be right back. twins. i didn't see them coming.
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>> 22 minutes past the hour, breaking story out of connecticut, reported shooting at sandy hook elementary.
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we are hearing reports of multiple fatalities. police telling a local tv stations some of the injured are children, but it is not clear if any are among the dead. the injured being taken to danbury hospital. our new york police reported one child may have been shot in hand. another in the face. the gunman is reportedly dead. officials telling the ap the shooter had two guns. we are looking at live pictures from our affiliate in new york, w. n.y. w. a gunman was in the main office of the school shortly after 9:40 a.m. eastern time and one person in one room had numerous gunshot wounds. investigators now searching the school with police dogs. dozens of heavily armed state troopers on scene. live pictures telling it all right there. surrounding the school, agents on scene as well, we're learning a code red has been issued to
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the surrounding towns. state police will news conference at 1:00 eastern, we will bring you those updates as they come. this is an unfortunate story that has continued to unfold. more details coming in by the minute and we will keep you updated. dennis: college for $199 a month. that is what university now is charging for unlimited online classes. we are joined by ceo jean wage. thank you for being with us. let's start with how many students have signed up for your service and where do you wanted to be in a year or five years? >> we opened in april of this year, we had 6,000 students because it is an open platform and under 1,000 who actually enrolled in the school. dennis: like everybody, just want to do it bigger. i will throw you a curve ball.
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your resume says that you have an mba from wharton and j.b. from harvard university and now you are trying to persuade me that i should and role for $200 a month. my degree with university now is not going to be anywhere near as valuable as the degrees you have from wharton and harvard. >> interesting way to put it. 46,000 schools in the united states, most of them no one ever heard of. a small segment of the u.s. education population is educated in these schools but disproportionate amount of resources and attention are focused on them. what we have done is taken an open enrollment school giving you a smarter option for going to college so you don't have to go borrow 60 or $70,000 in an online program and you could come and get a comparable degree that you get at a state university and get that for a fraction of the cost. dennis: 60% of college students
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today have government guaranteed loans and loans with a trillion doolars. since the money is so easy, to issue a credit rating they give it to you no matter what. is it harder to sign of students since they don't care about the cost? >> i think people are understanding what that means. everybody knows a horror story of someone who took on a bunch of that and can't afford to pay at. is not the education that is a problem but the amount of that you are taking on that is the problem and consumers are getting smarter about that and looking for smarter options. the fastest growing programs are the ones that are affordable because the fastest growing part of the market is working adults who don't get a grants and being asked to park it or borrow. dennis: how are you able to do it so cheaply? is it merely the lack of university infrastructure and buildings? is that the big cost differential? >> a lot of weathered dollars goal is out of the classroom.
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students are paying $69 for class. does a teacher make $40,000 a class? most of it is being soaked up in infrastructure. a lot contributes to student learning. we made our investment around making a personal bias compelling learning experience for students. we built a technology platform that allows you to go your own place and gives you feedback and put you in constant contact with your instructor. dennis: good luck to you in your new venture, ceo of university now. cheryl: house flipping was a dirty word during the financial crisis but what a vital new house flipping was back? investors large and small are making big profits. dennis: walmart wants a piece of hostess. the ultimate irony, the twinkie, a paragon of nonunion shops. cheryl: we will look at today's winners on the s&p, adobe, warner, virgin me and more. we will be right back.
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♪ dennis: 30 minutes past the hour. let's get to nicole at the new york stock exchange. >> reporter: at think of it as a verb. i'm going to see record that. when you look today, you think -- you see the stock is jumping. and it sitting at a new 52 week high. goldman, some positive commentary here that we are going to delve into. a leading vendor,
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well-positioned to target consumers that desire premiums viewing experience for the digital living room. and also the mobile devices, so this is really an iceboat of confidence. a buy rating, plus a $15 price target. the potential despite the fact that it already had a 2-week high. here $12.58 right now. certainly has some room to the upside. dennis: thank you, nicole. this just keeps getting stranger. mcafee is back in the u.s. he will talk to police, but only in a neutral country, and he will not return to that central american nation. casey have not been following this. police have called him a personal interest in the death of his former neighbor, american businessmen gregory foul. moments ago he just told a fox news that he had nothing to do with it. >> i was the first person to offer $25,000 reward for the rest of the people.
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i posted an open letter. i have nothing to do with the murder. i sympathize with them, but i cannot be held responsible is because they wanted to beat or someone wants me to be. i'm sorry. dennis: authorities have been after him since april 30th when he claimed the 42 armed soldiers stormed his property and handcuffed him for 14 hours after accusing him of running a meth lab. cheryl: this has been a most fascinating story. software security. he blew through $400 million on a lot of extracurricular activities basically according to several reports. now he is back in the united states. basically, you know, the police authorities still want to charge him. it will be interesting to see if he is extradited. cheryl: apparently money can buy your happiness, but eventually run out of it. the entire time he was on the lam in hiding he is talking to reporters left and right to live on television
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interviews which is kind of extraordinary for journalists but not a good idea for a suspect. cheryl: then he faked a heart attack to get himself not sent back to bullies or guatemalans and is here and doing more interviews. great stuff from the fox news channel. well, it has been a dirty word assess the financial crisis, but the business of buying on wanted homes and fixing them up for profit is making a comeback. co-president of, investors. your friends as in this business. where did you get the idea difference as the area of conflict in which is normally one person and by people getting in together and clipping some homes. why make this a business model. >> thank you for having us on. yes, trade has been a business. doing this since 1996. over 250 franchises in 100 markets, and it is very -- can be very lucrative, but a very fun business right now.
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cheryl: if i am a franchisee in arizona do i pay you a certain fee ted teach me have to foot the home? do you give me materials, alone? >> all of that. we help our franchisees' learn how do it. we also have -- provide all the advertising for them. we provide financing for them to buy the houses if they wish to do that. and ongoing support. cheryl: how much do i pay for a franchise? >> well, a franchise fee, we have a couple of levels. the king did in for as low as $12,000. in many cases that is lower than what many of these crews tried to charge that any of that. cheryl: but i need to, but the financing myself no matter what. if i want to be part of your network, i actually have to go in and i have to make sure that i have the capital backing to do >> that's correct, but we also will loan you the money to buy the house.
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fix it up and repair. cheryl: of these one person, five people getting together to meyer bhutan? >> some of all of that. most of our franchises, probably the biggest group, believed there not to more people that our corporate refugees, tired of that corporate world and they see the real opportunity in the real-estate market right now. cheryl: where are the opportunities? >> believe better not they are all over. what we need for a good market is a stable market. right now the markets have stabilized in most of the country's. cheryl: but are there hunters states than others? florida, arizona, nevada? >> absolutely. those markets, probably atlanta, georgia, florida, arizona. those of the ones we have seen the most opporunity. cheryl: it was a dirty word five years ago, but now it seems to
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be back. appreciate your time. >> thank you. dennis: union strikes helped kill the 20, and now twenties may get a new lease on life from one of the most hated union foes of fall. reports are that walmart is among two dozen possible bidders. consider the contradiction. hostess closed stores when the bakers' union rejected concessions. meantimes communions for years have paid walmart. cheryl: this is so interesting. we have to get back the twinkie in the ding dong. well, this is a way to save the brand. dennis: their will come back. the question is whether there will taste the same. union workers will not get their jobs back. you buy them back to buy the brand. cheryl: does walmart make it differently? does it taste differently? dennis: you don't buy it and then there to change it. that would be like new coke.
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cheryl: well, see what they do with that. well, it looks like regulation is not going to kill one booming business. you cite here. finally i regulatory victory. we will explain. dennis: as the hall that opens today why it could lead to the best year ever at the film box office. cheryl: wide-eyed according to the victor -- video. first off, take a look at the ten year treasury. having you ship my gifts couldn't be easier.
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well, having a t ton of locatios doesn't hurt. and a santa to boot! [ chuckles ] right, baby. oh, sir. that is a customer. oh...sorry about that. [ male announcer ] break from the holiday stress. fedex office. you know hopainful heartburn can be. for fast, long sting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®. >> reporter: and tracy burns with your fox business brief. stocks continued to search for direction after the stalemate in
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washington over the fiscal cliff negotiations continues. right now the dow is down about 11 points. discovery communications is expanding its presence in the northern market. the parent company of the discovery channel is buying a dozen networks in norway, sweden, denmark, and finland from a german tv company. roughly one-half billion. discovery has also approved a $1 billion increase to its existing stock buyback program. the most reid tweeted message for 2012 was president obama's for more years victory speech. a photo of him hugging the first lady. some of the other most tweeted events include the summer olympics, the super bowl, the election, of course, and super storm sandy. as the latest from the fox business network, giving you the power prosper.
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dennis: hollywood has had a bomb big box office ride all year. trancelike the avengers, that
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shooting of a dark night rises, with the opening of the hub it h new ticket sales to a record high. trying to make money on this. that, it looks like hollywood will pull a come back here. >> i think the year is virtually a lock. as you pointed out, it has been a bumpy year. the avengers, hundred names among the dark night, despite the tragedy or highlights, but there were some write-offs along the way. overall it was a pretty decent year, i tested the continued skill of the box office, but the u.s. and certainly abroad as well. dennis: now that we are in this most storied season, tell us what big films you think are going to come in and what studios will be held? >> i think the hobbit is virtually a lark to set a december record off of the allegiance of tolkin fan. i think there is a certain
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concern that the movie could be a little slow on the presentation in such. it also introduces some interesting new technology. crisper 3d. it is up big event in the picture. dennis: that is time warner. >> absolutely. it is warner brothers, but it is probably -- it is certainly something that is a positive for warner brothers and time-warner, but you have to remember, this is a real aircraft carrier of the company. it is helpful, but it is not transformative. dennis: okay. give us another film in studio. >> well, i think certainly for christmas, it could be interesting. nbc you which had a very checkered year. but i think that is generating relatively favorable was. and on that note, the wine scene company also for christmas, it
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should get a lot of attention and perhaps a little controversy along the way as well. dennis: so, you thinking and musical be a big hit. although, for a musical is seems to have an awful lot of special effects to one on. >> i think this will be unusually highly grossing for a musical, particularly given the talent that is involved. dennis: and now let's look at the other end of the food chain. let's look at the hitter stock. i guess the two biggest ones are some of mark and regal entertainment. where are you on those guys? >> really under appreciated. reran an inflection point in terms of what digital can do in the theater. i think if you look at the great latin american growth opportunity. a real cash flow machine. and north american, but i think the studios have concluded that the theatrical window, the pivotal window for the business for a long time. you know, screening house over
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longer time frame, but the wires over time are really theatrical and is in streaming. the package media, the dvd -- dennis: so focus more on the people who show the films rather than the people and make them. thank you for being with us. cheryl: it seems like it is going to be quite a year for the media companies, the ones that you've covered that are coming now with these films. actually, hollywood may have a blockbuster year, a record year. dennis: a lot of them are up 20- 30 percent. cheryl: interesting to see how it does, which i will be going to see right away. dennis: it's such a growth town. cheryl: it looks awesome, though. recorder killed. every 15 minutes -- well, i am grow, so i'm going to go see it. nicole petallides. >> reporter: see everything. see it all. let's take a look. i want to take a look. off of its earlier lows, still
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to the downside. down about 2 percent, said this is all about hotel properties. actually a reid, and they plan to offer 7 million shares to try and help the company for future hotel acquisitions, pay down debt, and the possible purchase of a hotel and a major u.s. market as well. the stock is down right now. teefor 07. the major market averages are not too far off. the dow jones industrial is down eight points at this time. it is an end has come under pressure on the dow, american express, merck, microsoft, exxon the oil services index to the downside. by the meantime, transports are looking good. back to you. dennis: thank you, nicole. an ailing calves data whole lot easier. smart fun applications let customers locate taxis and their surrounding area. just get approval from the reelected new york taxi limousine commission to iran a one-year pilot program, add to
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the cash and shut down the application compatibility with yellow cab drivers in october fearing it would lead to prearrange rides between customers and cabdrivers. paris that thought. the protest may have played a role. she loves that. cheryl: i will say, it's not much more. another issue. the story out of d.c. we actually hailed a cab. but, it really showed why push down, a great idea that consumers want to migrate business idea, and you have city officials, government regulators it's so frustrating. dennis: state legislators passed 40,000 laws combined income many of them regulating local small businesses like this one. way to go. cheryl: a score one.
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that ceo needs to come on the show into an interview. profiting on superstar and sandy. of the government plans to make big bucks while the victims of the storms continue this effort. dennis: of the stick a look at some of today's winners over on the nasdaq.
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♪ cheryl: and it's time for your westcoast minute. a judge has ordered walgreens to pony up 16 and a half million dollars to settle charges
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against its california stores. the lawsuit filed back in june accused the stores in california of illegally handling pesticides , bleach, paint and pharmaceutical waste. walgreens denied knowledge of the wrongdoing. now, a story from earlier this week. today oregon's governor heads to the state legislature to ask for a guarantee that lawmakers will not raise or change corporate taxes and estate. the second-largest employer, which is nike, the world's largest sneaker maker says it will create jobs and expand in business, but only if taxes do not go up there. president obama finally weighing in other recreational marijuana debate. the president says federal party should not target recreational users in washington and colorado because the u.s. government does not have the resources right now to do it, financial resources. the president has asked attorney-general eric holder to examine that issue. and that is your west coast minute. interesting though punt from the president 57 for him to make it a costa issuance of the idea
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that maybe it's a state's rights issue. when he ran for office for his first term he said he wasn't going to do what bush did which was to try to penalize dispensaries selling legal medical marijuana. here is a president. this is disappointed. a president who has admitted using cocaine. cheryl: an interview that will be broadcast. he did say that he doesn't want to condone illegal drug use spiritism believe in it. right now smoking marijuana for fun is illegal. dennis: in 48 states. now it's legal. adults think you should have billboards telling people to smoke. it would hurt our productivity as a nation. talk about averages hurricane sandy -- actually, we were not talking about an all. things that really won't help the struggling homeowner said by the superstar.
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now, elizabeth macdonald has been up front of the story. >> reporter: being called the port storm. the spending bill for residents of new york and new jersey. let's take a look at some of the wish lists and items in the bill. $41 million for military bases including cuba. 23 million for tree planting, 4 million for sand dunes, $4 million for new cars and office equipment at the fbi. $2 million for a new roof at the smithsonian all the way down to $1 million for treason cemeteries, so here is the debate. did that storm hit d.c. or new york and new jersey? is it the right thing to nationalize the disasters? should you have it at the state -- spinning at the state level and not governed by the federal government? that is the problem. no hearings at on the spending in the spending bill. $60 billion on this is equal to what the tax hike would be in the top 2% bracket. dennis: what are they -- do we have any idea?
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>> reporter: i have been checking into it. no word. we have an update from the governors of new york, new jersey, and connecticut's and 60 billion went out the door two weeks after katrina. seven weeks after hurricane sandy. but with hurricane katrina, we saw a lot of pork in there, too. a big pork wagon. soccer balls for federal workers, new laptops for federal workers, new cell phones for federal workers. for the 60 billion for sandy is talking $3 billion to fix the repairs of federal assets. so that's the problem. 3 billion is in that bill. dennis: the smithsonian museum, it was not damaged by hurricane sandy. dennis: rap that into the spending bill. bring in avian a single year. most of that just on sandy.
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cheryl: really quick. of all the governors are would think that he would be the one screaming at the rooftops about this issue. >> reporter: have not heard no word yet about the port storm going on. cheryl: you know he will be honest. c'mon. dennis: dennis: what if we go over the cliff? cheryl: why he thinks the u.s. is headed for recession no matter what and washington. [ malennouncer ] it's tt me of year again. time for citi price rewind. because your daughter really wants that pink castle thing. and you realldon't want to pay more than you have to. only citi price rewind automatically searches for the lowest price. and if it findone, you get refunded the difference. just use your citi card and register your purchase online. have a super sparkly day! ok. [ male announcer ] now all youeed is a magic carriage.
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>> were coming up on 1:00. >> this go cliff meetings at the white house failed to amount to much. steve forbes joining us with his warning for washington and why he fears a recession imi

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